TIAN TU CAPITAL(1973.HK):REPORTED ANOTHER NET LOSS AMID VOLATILE STOCK MARKETS IN 1H24
TIAN TU CAPITAL(1973.HK):REPORTED ANOTHER NET LOSS AMID VOLATILE STOCK MARKETS IN 1H24
As of end June 2024, external capital represented 81.3% of the total committed capital of its managed funds. The financial results of Tian Tu Capital Co., Ltd. ("TC") have been negatively affected by highly volatile stock markets in 1H24. TC's (loss) profit for the year attributable to owners of the Company reached (RMB740.5m) in 1H24, against (RMB194m) in 1H23 and (RMB873m) in 2023. In our view, because of technical accounting treatment, TC's investment performance for a particular period will be significantly affected by short-term market volatility, regardless of whether the fundamentals of its portfolio companies experienced significant changes or not. In our view, TC is a leading private equity investor and fund manager specialising in China's consumer sector. In the medium- to-long term, TC is one of the geared beneficiaries of the sustained long- term growth of China's consumer industry. However, its financial results might continue to be negatively affected by volatile stock markets in the short term. We noted Wind Hong Kong Index (Consumer Discretionary) and Wind Hong Kong Index (Consumer Staples) dropped 3.7% and 21.5% YTD as of 2 September 2024, against decreases of 2.7% and 11.9% in 1H24, respectively. Downgrade to HOLD rating.
天圖資本有限公司（"TC"）的財務業績在2024年上半年受到高度波動的股票市場的負面影響。 TC公司所有者應歸屬年度虧損達到人民幣740.5億元，在2024年上半年對比2023年上半年的人民幣1.94億元和2023年的人民幣8.73億元。據我們觀察，由於技術會計處理，無論其投資組合公司的基本面是否發生重大變化，TC在特定期間的投資業績都將受到短期市場波動的顯著影響。在我們看來，TC是中國消費行業板塊的主要股權投資者和基金經理。從中長期來看，TC是中國消費行業持續增長的潛在受益者之一。然而，在短期內，其財務業績可能會繼續受到波動的股票市場的負面影響。我們注意到港股風雲指數（消費必需消費品）和港股風雲指數（消費者耐用品）在截至2024年9月2日的當年至今累計下跌了3.7%和21.5%，分別對比於上半年分別下跌了2.7%和11.9%。降級至持有評級。
Key Factors for Rating
評級的關鍵因素
Its AUM reached RMB21.1bn as of end June 2024, down from RMB24.4bn as of end December 2023 and RMB25.1bn as of end December 2022.
截至2024年6月底，其管理的資產總額（AUm）爲人民幣2.11億億元，低於2023年12月底的人民幣2.44億億元和2022年12月底的人民幣2.51億億元。
As of end June 2024, external capital represented 81.3% of the total committed capital of its managed funds.
截至2024年6月底，外部資本佔其受託基金承諾資本總額的81.3%。
TC managed 13 Renminbi-denominated funds and 3 USD-denominated funds as of end June 2024.
截至2024年6月底，TC管理了13只人民幣基金和3只美元基金。
Key Risks for Rating
評級的主要風險
Major risks include 1) macroeconomic volatility; 2) fluctuations in capital markets; 3) fair value changes of its investments; 4) delayed fund raising.
主要風險包括1）宏觀經濟波動；2）資本市場波動；3）其投資的公允價值變動；4）基金募集延遲。
Valuation
估值
TC's financial results have been significantly affected by the short-term market volatility in 2023 and 1H24, mainly due to volatile stock markets and accounting standards. According to the applicable accounting standards, mark-to-market valuation of the shares of each of its listed portfolio companies tracks its stock value at the balance sheet date of each reporting period, and the valuations of its unlisted portfolio companies typically make references to stock prices of comparable listed companies. We noted Wind Hong Kong Index (Consumer Discretionary) and Wind Hong Kong Index (Consumer Staples) dropped 3.7% and 21.5% YTD as of 2 September 2024, against decreases of 2.7% and 11.9% in 1H24, respectively. We decreased our target price from HK$8.57 to HK$3.12, based on about 0.35x 2024E P/B.
TC的財務結果在2023年和1H24受短期市場波動的顯著影響，主要是由於不穩定的股票市場和會計準則。根據適用的會計準則，對其各個上市組合公司股份的按市值計量通常跟蹤每個報告期的資產負債表日的股票價值，而其未上市組合公司的估值通常參考可比上市公司的股價。我們注意到，截至2024年9月2日，溫德香港指數（消費性消費品）和溫德香港指數（消費品必需品）分別下降了3.7%和21.5%，而在1H24分別下降了2.7%和11.9%。我們根據約0.35倍2024E市淨率，將目標價從HK$8.57下調至HK$3.12。
譯文內容由第三人軟體翻譯。
